• @[email protected]
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    1311 months ago

    That isn’t negative tips. The lowest you can make in tips is $0. Even when tip pooling, the lowest you can make is $0, which requires no tips what so ever to have been given. There is no 100% tax rate, and you are at no point ever paying into the tip pool out of your own pocket.

    • @[email protected]
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      11 months ago

      I understand what you’re saying. But for a person who is now down from $5 to $2.50 to a $100 that is then taxed you’re effectively making less money than you earned. That’s why you can have negative net even while making take home pay.

      But think about what might happen if the bill is paid incorrectly in cash. The company will absolutely take cash tips to compensate in the event that you or someone else messed up when counting the cash or giving change or whatever. With tip pools it’s unlikely. But it has happened.

        • @[email protected]
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          11 months ago

          It’s technically tax fraud, but yes. You could be. Back of house staff can include managers, cooks and dish washers, and even the hostess. Those people aren’t paid the $2.75 to $3.75 that the wait staff are paid. They’re considered hourly employees and they fall under different pay requirements under the law. A business that doesn’t augment the amount of pay for wait staff not making the federal minimum wage ($7.25) an hour in tips, that business is committing wage theft. To then be paying non-wait staff out of the wait staff tips is illegal as part of the wage theft. But since the company is already committing wage theft there’s no reason not to commit tax fraud to cover up the wage theft.